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U.S. stocks drop on Fed tapering worries
Fed chief: Tapering of bond buying may occur in next few meetings
NEW YORK (MarketWatch) — U.S. stocks slid Wednesday, reversing gains after minutes from the Federal Reserve’s latest meeting and comments from the Fed chief suggested the central bank may begin tapering its bond-buying program in coming months.
Stocks had a wild ride during the session, as investors digested congressional testimony by Fed Chairman Ben Bernanke and the release at 2 p.m. Eastern of the minutes from the Fed’s April 30-May 1 meeting.
The S& P’s 500 Index slumped 13.81 points, or 0.8%, to 1,655.35, after rising as high as 1,687.18.
The Dow Jones Industrial Average dropped 80.41 points, or 0.5%, to 15,307.17 after rising as much as 155 points earlier in the session and falling more than 121 points. It was the biggest intraday point swing for the Dow since February.
The Nasdaq Composite fell 38.82 points, or 1.1%, to 3,463.30.
All three benchmarks logged their steepest point and percentage losses since May 1, according to FactSet data.
In the morning, stocks had rallied after the release of Bernanke’s prepared remarks, in which he said that premature tightening in policy could strangle the economic recovery.
However, in the Q& A session, lawmakers tried to nail down when the Fed may taper its bond-buying program, with one official asking if it could occur before Labor Day. Bernanke responded by saying that the Fed could take a step down in the pace of asset purchases in the “next few meetings.” That comment led stocks to pare gains and push the market lower by early afternoon.
...more...
... what is expected of the next Dow, S& P500 closing...........now:
| Index Future | Future Date | Last | Net Change | Open | High | Low | Time |
|---|---|---|---|---|---|---|---|
| Dow Jones | Jun 13 | 15,371.00 | +16.00 | 15,363.00 | 15,371.00 | 15,353.00 | 03:02:40 |
| S& P 500 | Jun 13 | 1,667.40 | +1.80 | 1,666.00 | 1,667.40 | 1,664.80 | 03:03:23 |
| NASDAQ 100 | Jun 13 | 3,024.75 | +3.25 | 3,023.25 | 3,024.75 | 3,022.00 | 03:02:35 |
morning:
| Index Future | Future Date | Last | Net Change | Open | High | Low | Time |
|---|---|---|---|---|---|---|---|
| Dow Jones | Jun 13 | 15,357.00 | +2.00 | 15,363.00 | 15,363.00 | 15,353.00 | 23:22:44 |
| S& P 500 | Jun 13 | 1,665.40 | -0.20 | 1,666.00 | 1,666.50 | 1,664.80 | 23:22:44 |
| NASDAQ 100 | Jun 13 | 3,021.75 | +0.25 | N.A. | 3,023.00 | 3,021.00 | 23:22:44 |
...although hopeful of more record highs to come.... it is good to listen to the other side point of view...
U.S. stocks rise after Fed officials’ QE signal
NEW YORK (MarketWatch) — U.S. stocks rose on Tuesday, with the Dow industrials and S& P 500 finishing at record highs, after comments from two Federal Reserve officials suggested that the central bank is not close to tapering its bond-buying program.
The Dow Jones Industrial Average gained 52.30 points, or 0.3%, to end at 15,387.58, notching its 19th consecutive Tuesday rise.
The S& P 500 index climbed 2.87 points, or 0.2%, to 1,669.16, with health care the biggest gainer and telecommunications the biggest laggard among the 10 major industry groups.
The Nasdaq Composite rose 5.69 points, or 0.2%, to 3,502.12.
.... “Broadly speaking, investors are really waiting to see what Mr. Bernanke is going to say in front of Congress,” said Andrew Wilkinson, chief economic strategist for Miller Tabak. “The next 20 points in the S& P 500 are probably predicated on what he has to say.”
.... Bullish sentiment remains strong on Wall Street. Goldman Sachs raised its year-end target for the S& P 500 to 1,750, and Deutsche Bank recommended staying long equities and added that valuations implied that the S& P 500 could trade as high as 1,800 by year-end.
... another record in the making...now:
Stock Futures Americas
| Index Future | Future Date | Last | Net Change | Open | High | Low | Time |
|---|---|---|---|---|---|---|---|
| Dow Jones | Jun 13 | 15,330.00 | +11.00 | 15,315.00 | 15,332.00 | 15,304.00 | 04:00:49 |
| S& P 500 | Jun 13 | 1,665.50 | +0.90 | 1,663.80 | 1,665.90 | 1,662.80 | 04:00:47 |
| NASDAQ 100 | Jun 13 | 3,024.50 | +3.50 | 3,021.50 | 3,025.00 | 3,019.50 | 03:57:21 |
morning:
Stock Futures Americas
| Index Future | Future Date | Last | Net Change | Open | High | Low | Time |
|---|---|---|---|---|---|---|---|
| Dow Jones | Jun 13 | 15,309.00 | -10.00 | 15,315.00 | 15,315.00 | 15,304.00 | 21:08:46 |
| S& P 500 | Jun 13 | 1,662.90 | -1.70 | 1,663.80 | 1,663.90 | 1,662.80 | 21:07:51 |
| NASDAQ 100 | Jun 13 | 3,019.25 | -1.75 | N.A. | 3,019.75 | 3,019.00 | 21:08:37 |
U.S. stocks drop, retreating from all-time highs
SAN FRANCISCO (MarketWatch) — U.S. stocks finished lower on Monday after
comments from Chicago Federal Reserve President Charles Evans knocked
them from new all-time highs set earlier in the day.
The S& P 500 index finished down 1.18 points, or 0.1%, at 1,666.29, after touching a new high of 1,672.84 during the session.
Energy posted the largest gains of the index’s 10 major industry groups with consumer staples being the biggest laggard.
The index traded as low as 1,663.52 in the afternoon after Charles Evans said in Chicago that the central bank’s
policy stance is appropriate and that the improving economy still faces headwinds. Evans is a voting member of the FOMC this year.
While defensive stocks have been dominating the rally for most of the
year, there’s been new life in cyclical stocks recently, propelling the
market into the “free skies” of record highs.
Energy is the third best-performing sector in May, behind financials and
industrials. Year-to-date, health-care stocks are still the best
performers with a 22% gain. Then there’s financials with a nearly 22%
gain and consumer discretionary, up 21%.
The Dow Jones Industrial Average declined 19.12 points, or 0.1%, to close at 15,335.28, with only 11 of
its 30 components finishing in positive territory. Intraday, the index
touched an all-time high of 15,391.84 and was down as low as 15,314.15.
...
What to Watch: In stocks, long view looks good
NEW YORK -- Long-term investing is so 1990s. Back then, to make a lot of money, all you had to do was buy stocks and hold them. Investing in the S& P's 500-stock index was a sure thing. The benchmark gauge, which was the darling of the index fund investing craze, posted total returns of more than 20% in six separate years in the '90s, including an unprecedented five-year run from 1995 through 1999.
But buy-and-hold was discredited in the 2000s, when large-company stocks, hurt by the 2000 tech-stock crash and the " Great Recession," posted compound annual losses of roughly 1%. In contrast, stodgy long-term U.S. government bonds gained an average of 7.7% per year in the last decade, says Strategas Research Partners. It was the first time stocks underperformed bonds since the 1930s. But with the stock market now more than four years into a powerful bull market, Strategas' co-founder Jason Trennert thinks it's important to remind investors that stocks have been the wealth-building asset of choice over the long haul.
" The combination of a 24-hour news cycle and a continuation of a global financial crisis that offers an endless supply of market-moving information . . . makes it difficult for investors . . . to avoid getting caught up in the sturm und drang of the tape," he told clients. He said $1 invested in large-cap stocks at the start of 1926 would now be worth $3,532. The same investment in U.S. government bonds would be worth just $123.
The takeaway? Think long-term.
Dow 15,000 is only the beginning
Commentary: Why investors distrust the rally
It’s probably not an exaggeration to say that this is the most hated stock market rally of all time.
The simple facts that the S& P 500 is up about 17% year-to-date or that the major indexes are setting new
highs should prompt immense celebration across Wall Street.
But there’s no party. Negativity and doubt persist.
I personally believe the front-loaded returns of 2013 are ripe for a brief pullback, but I am very bullish longer term and I’m staying fully invested.
My reasons aren’t particularly unique, but here are the biggies:
Fair to attractive valuations
There are many data points here that people can parse as they see fit. Mine is that the S& P’s trailing P/E ratios haven’t been below 13 since 1989 — and since January 1990, the S& P’s median P/E is about 20 and the average is 25. We are currently at around 18. You can say I’m cherry-picking, but I would assert I am favoring the era of computers over the era of the horse and buggy.
Politicking baked in
I mean, what out of Europe could rattle us after Cyprus? And if the debt ceiling debacle in 2011 and the fiscal cliff in 2012 didn’t sink American consumers or derail the economy, what do we have to be afraid of?
Housing recovery
RealtyTrac reported yet another big drop in distressed property recently, with foreclosures hitting a six-year low. Meanwhile prices are up at the fastest pace since 2006, according to Case-Shiller. This housing recovery isn’t just good for jobs or homebuilder stocks and for lenders in the financial sector, but for the wealth affect it brings to consumers, too.
The Federal Reserve
Rates remain low, fostering investment and spending. Like it or lump it, it doesn’t appear that will change anytime this year — even if recent reports from Fed watcher Jon Hilsenrath make it clear quantitative easing won’t last forever. And if you’re a macro bear that expects GDP or unemployment to worsen, there’s even less of a chance Ben Bernanke will take his foot off the gas.
American resilience
One of the best lines I read last week was from Cullen Roche over at Pragmatic Capitalism, who wrote, “The Neanderthal who shorted Cro-magnon Man stock 30,000 years ago is sitting on hefty losses.” This reminds me of Warren Buffett’s crisis-era wisdom that “It’s never paid to bet against America.” Entrepreneurs and businesses always surprise us and the economy always has a second act — it always has. Besides, if you believe that humans are a doomed race and that America will become a Third World country… well, you have bigger problems then rebalancing your IRA based on that outlook, don’t you? ...more...
Investing now? Nervous? Here's what to do
Investing in the stock market when it's at an all-time high seems like one of those ominous moments, like when someone decides to go for a swim in Jaws or peer at an egg in any of the Alien movies. You figure something bad is going to happen, and soon.
But stocks often reach all-time highs without plunging immediately into soul-searing bear markets. Your mission now is to find a way to invest in the market without losing a big chunk of your portfolio — or having nervous breakdown. Here's how.
First, bear in mind that you can often make very good money when the stock market has reached new highs. Let's dolly back to October 1982, when the Standard & Poor's 500-stock index beat its previous all-time high. The S& P 500 soared until Oct. 19, 1987, when, well, Bad Things happened. (The S& P 500 fell that day, the largest one-day collapse in history.)
Nevertheless, even after the 1987 crash, an investor who bought at the all-time high in 1982 was still sitting atop an 87% gain. And, had you bought stocks at the S& P 500's next new all-time high — 338 — you'd have a tidy gain today with the market benchmark at 1,650.
...more...
Dow, S& P 500 end week with record highs
Stocks defied skeptics again Friday, attracting attention from even the most hardened market-watchers. The Dow and the S& P's 500 index closed at record highs.
The Dow gained 121.18 points, 0.8%, to 15,354.40. The S& P 500 ended up 15.65 points, 1%, to 1,666.12. And the Nasdaq composite index rose 33.72 points, 1%, to 3,498.97. It was the fourth straight week of gains for the indexes.
They were joined by the Russell 2000 small-cap index, reflecting the breadth of the indexes' 17% run up so far this year. The index closed up 10.94 points, 1.1%, to 996.28.
Investors' bullishness was fueled Friday by two economic reports, one showing consumer confidence in May surged to the highest levels since 2007 and one reflecting a jump in the leading indicators index, a proxy of the economy's future health, in March, buoyed by a sharp rise in applications to build homes and apartments.
The yield on the benchmark 10-year Treasury note jumped to 1.95%, up from an intraday low of 1.86% Thursday. The price, which moves inversely to the yield, plunged -- reflecting investors fleeing the safety of bonds.
The price of gold, an inflation hedge, fell 5% for the week, finishing Friday down 2.2% to $1,357 per ounce.
The Dow on Thursday fell to 15,233.22, a loss of 0.3%. The S& P 500 dropped 0.5% to 1,650.47. The Nasdaq composite index fell 0.2% to 3,465.24.
Applications for unemployment benefits jumped to their highest level in six weeks, the U.S. Labor Department reported Thursday, while manufacturing slowed in the mid-Atlantic region.
... doing better than morning....
Stock Futures Americas
| Index Future | Future Date | Last | Net Change | Open | High | Low | Time |
|---|---|---|---|---|---|---|---|
| Dow Jones | Jun 13 | 15,253.00 | +41.00 | 15,236.00 | 15,254.00 | 15,230.00 | 02:44:08 |
| S& P 500 | Jun 13 | 1,652.80 | +4.70 | 1,649.00 | 1,652.90 | 1,648.60 | 02:45:18 |
| NASDAQ 100 | Jun 13 | 3,006.00 | +7.75 | 3,001.50 | 3,006.00 | 3,001.50 | 02:43:22 |
Stock Futures Americas
| Index Future | Future Date | Last | Net Change | Open | High | Low | Time |
|---|---|---|---|---|---|---|---|
| Dow Jones | Jun 13 | 15,235.00 | +23.00 | 15,236.00 | 15,236.00 | 15,235.00 | 23:05:02 |
| S& P 500 | Jun 13 | 1,651.20 | +3.10 | 1,649.00 | 1,651.70 | 1,648.60 | 23:05:19 |
| NASDAQ 100 | Jun 13 | 3,003.25 | +5.00 | 3,004.00 | 3,003.25 | 2,999.00 | 22:20:13 |
U.S. stocks rise for another record close
NEW YORK (MarketWatch) — U.S. stocks rose Wednesday, with hopes for
ongoing central-bank stimulus bolstering sentiment amid economic reports
illustrating a contraction in manufacturing.
“It seems like it’s becoming a broken record,” said Andrew Fitzpatrick,
director of investments at Hinsdale Associates Inc., of the string of
all-time highs, which again came into play on Wednesday.
After starting the session in the red, the Dow Jones Industrial Average
rose 60.44 points to 15,275.69, the index’s 20th record finish this year.
The market’s current bull run, now in its fifth year, comes amid
continuing stimulus from the U.S. Federal Reserve as well as monetary
easing by central banks around the globe, along with
better-than-expected corporate earnings.
“Wall Street is getting more comfortable they won’t just pull the plug
they’ll do it at a more measured pace,” said Fitzpatrick, referring to
the Federal Reserve.
“We’ve seen little reaction to the rumors that the Fed is behind closed
doors trying to craft some kind of exit strategy,” he added of a Wall
Street Journal report last week.
That said, Fitzpatrick is among the consensus calls for a market pause or correction.
“I do think a pullback here is warranted, and the sooner we get it, the better.” Read blog about rally’s potential.
Dow component Cisco Systems Inc. shares leapt higher after Wednesday’s closing bell as the networking giant reported quarterly results that beat Wall Street’s projections.
“The Cisco report tends to carry weight, especially in light of its
outlook it’s a good gauge in terms of the business climate and the
economy,” said Fitzpatrick.
Tallying its 20th record close for 2013, the S& P 500 index gained 8.44 points to 1,658.78, with consumer staples faring best and energy the poorest performing of its 10 industry groups.
The Nasdaq Composite Index
climbed 9.01 points to 3,471.61.
U.S. stocks’ rally topples more records
Dow industrials notch 18th straight Tuesday rise
NEW YORK (MarketWatch) — U.S. stocks on Tuesday rallied to another record-breaking close as Wall Street embraced the view of a still-improving economy.
On CNBC Tuesday, hedge-fund manager David Tepper said he remains bullish on stocks and that the economy is still getting better.
“The news of the day is more good than bad,” said Art Hogan, market strategist at Lazard Capital Markets LLC, who cited a better-than-expected report Tuesday from the National Federation of Independent Business, which released data showing conditions brightened for its members in April.
Strong April retail sales reported Monday are “further proof the economy has momentum despite tax hikes, fiscal cliffs, sequestration, [and] debt ceilings,” wrote Jeffrey Saut, chief market strategist at Raymond James & Associates Inc.
Advancing for an 18th consecutive Tuesday, the Dow added 123.57 points to 15,215.25, with all but four of its 30 components advancing.
Not time to correct?
Lazard’s Hogan rattled off other market statistics: “We’ve had 177 days without a 5% correction, and since 2007 we’ve had 512 central-bank interest-rate cuts, which is probably one of the more important numbers in the whole string of events.”
Also finishing at a record close, the S& P 500 index added 16.57 points to 1,650.34, with financial shares faring best among its 10 major industry groups.
Tepper, co-founder and owner of Appaloosa Management LP, said his firm continues to hold stock of U.S. banks, including Citigroup Inc.
The Nasdaq Composite gained 23.82 points to 3,462.61.
For every share that fell, more than two gained on the New York Stock Exchange, where 699 million shares traded.
Composite volume surpassed 3.4 billion.
guoyanyunyan ( Date: 12-May-2013 11:35) Posted:
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http://www.cbsnews.com/8301-250_162-57583936/u.s-wont-hit-debt-ceiling-until-labor-day-says-treasury-secretary/
seems like they wont hit the ceiling until september.. but wonder if market still will be hit if the politicians fail to meet an agreement by may 19
nqing87 ( Date: 12-May-2013 02:33) Posted:
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definitely it's not a sure thing that in may stocks will always go down.. it depends on the economic & political situation.. i wasnt too concern with the notion of sell in may & go away, probably this notion comes out 'cos usually market sentiment in may traditionally is not as good compare to other months usually.. however, interestingly, if im not wrong, the last 3 years 2010, 2011, 2012 all saw a drop in dow, which may give reason why ppl say sell in may & go away.. there must be some trend ppl see to come out with this phrase.. but it's mainly the may 19 that im concern about.. last year, we have eurozone crisis in which media went full blown coverage of it and coincide near this period, this year seems that media is quiet for now, not sure if in this week media " suddenly" remember they have this issue in hand that might be of interest to ppl.. not sure why media so quiet about it, maybe ppl see the republicans & democrats will be able to come to agreement with this issue in hand? or maybe they just de-illusion themselves and want the market to be bullish.. the last time the politicians had disagreement about it in 2011, dow drop about 20%.. if this happen again, i wouldnt be expecting too much of a drop, say 10-20% correction, since ppl usually get immune & more adapted to same kind of news.. if nothing fall-out, probably stocks continue to run up, awaiting for the next bad news to challenge a correction..
anyway, any seniors got any news and outlook of the may 19? im keeping myself out & trying not to be tempted to this bull, at least in the short term.. now entering will be like buy high & hope u can sell higher lol..
junction ( Date: 11-May-2013 12:31) Posted:
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